Which Crypto to Select? Payments Service Provider
We'll walk you through the most important decisions to take and explain the capabilities available through different kinds of options. Additionally, we'll help you comprehend some of the terms that we'll be using as we move through the procedure.
Understanding the two ways to utilize cryptocurrency-based payments
If you're looking to accept bitcoins on your site, you have two choices:
- The Cryptolite If you'd like to take cryptocurrency payments and don't have any other financial interest, then this might be the ideal solution for you. You need to look for options that will enable you to receive the correct amount in your account as swiftly and effortlessly as it is.
- Additional Info: This category can get very complicated. If you'd like to store most or all of your crypto as a cryptocurrency, or to take on a wider range in currencies or even sell NFTs, you'll need higher-end methods.
Selecting between a custodial and non-custodial crypto-payments service
If you're considering the possibility of accepting cryptocurrency as a payment method for your website the first step you'll have make is to decide if you want to use one of the custodial, or non-custodial service.
This could use as a complement to the choice for "crypto lighter" or "something different."
Custodial service providers provide custodial crypto payments
Most merchants select this option because it offers security and simple user experience. It will provide support and be able to trust the terms of service and benefit from a variety of choices (such an automatic settlement option with your bank) since your service provider will manage your accounts in crypto for you.
If you're in search of "crypto light," custodial crypto payments services are the most suitable choice.
The benefits of having a Custodial Crypto Payments provider include:
- A complete extension with integrated
- Accepting all cryptocurrency made available by clients
- Directly into your account at your bank in fiat currency
- Account access via email account and password
- Support Services
- The transaction fees are minimal and you are assured of guarantee against chargebacks and cancellations
The crypto payment companies that aren't custodial
If you're a pro at cryptocurrency and would like access to the most advanced features it is possible to choose an alternative to the custodial system. If you choose an alternative which isn't custodial you'll control your own account and have the sole responsibility for ensuring security and control your account in cryptocurrency. It's definitely not something to be taken lightly. If you're a seller with an active license and a valid license, you'll be able to enjoy all the benefits of cryptocurrency.
Advantages of using a custodial crypto payment system:
- Control and access to your crypto immediately after your receipt - there's no requirement to wait for the settlement to be processed by a third-party.
- There are no restrictions on the conditions and terms. Nobody can cancel or remove the account from yours or use of your services.
- All actions are dependent upon the law in effect and the capability of each individual. You are able to trade what you'd like as well as control your cryptocurrency in accordance with your personal preferences.
- Your sole accountability lies with the security of your account - no third-party data breaches or hacks might alter the balance of your account.
Crypto vocab check
Fiat Currency: The currency issued by a government (e.g. USD, EUR, GBP).
Cryptocurrency: Currency secured by the principle of cryptography (e.g. BTC, ETH, DOGE).
Stablecoin The kind of cryptocurrency that is tied to a fiat currency. (e.g. USDC (where USDC = 1 USDC equals one USD).
The advantages of cryptocurrency in the payment of services
There are many features to take into consideration in deciding between custodial and non-custodial custodial services.
Here, you'll be able to see all the options and a listing of aspects that highlight the many possibilities to consider. If you're considering this list, it is important to know that it's only a guide to what's feasible. Certain partners might not offer all options.
| Highlights | HTML1 Custodial | Non-custodial |
| Contract in conjunction with a third-party The person you sign up to an offer with a business which is subject to its terms of service. | Y | N |
| Account recovery If you've been denied the access you have to your account you may be contacted for a reset of your password or get access back by contact with the company. | Y | N |
|
Support
A user has access to help and seek it through the support service. |
Y | N |
|
Automatic exchange of stablecoin or other crypto
It is possible to convert your cryptocurrency into a stablecoin or another cryptocurrency. |
Y | Y |
|
Automatic exchange and conversion of foreign currencies
You can choose to have your cryptocurrency automatically converted to fiat. Keep in mind that calculations for exchange rates and rates can differ depending on the exchange that your partner uses. |
Y | N |
|
Automated Settlements for your Bank
You can choose to pay the cash promptly at your bank. |
Y | N |
|
Receive the exact value of fiat currency
It can also help protect you from being impacted by fluctuation in the prices of crypto. Alternatives that do not have custodial status could reduce however, they cannot completely eliminate fluctuations, by opting to allow only stablecoins. |
Y | N |
|
Specific attributes for sellers
Certain providers offer features that help sellers to save time and energy. These include things like risk profiling (to ensure that you don't receive cash from criminals) as well as security from payments that are not made or overpaid, as well as invoices through emails. |
Y | N |
|
Transaction finalization protection
Blockchains are built on blocks, which are used in order to complete transactions. The greater the number of blocks created following a particular transaction, the safer the transaction. Security helps to avoid the risk of sending out products and then seeing an exchange be reversed. |
Y | N |
|
Insurance for funds
All custodial solutions, non-custodial or custodial have the potential to be hacked. Insuring funds can be an additional measure of security for users of the custodial system. The protection is not the same for every business and business owners must be aware of their partner insurance, and refund policy. |
Y | N |
| Y | Y | |
|
Supports subscriptions/recurring payments
If they pay with cryptocurrency, they must sign off on each transaction. This means that recurring payments is not an option However, some custodial providers provide tools that can generate and send invoices automatically on a specific date. |
N | N |
|
Charges for transactions that are very low
Both custodial and non-custodial payment companies typically charge significantly lower transaction costs (1-1.5 percent) as compared to traditional providers of payment (2-3.5 per cent). |
Y | Y |
|
In the case of cryptocurrency networks, there are (e.g. gas) fees
Direct cryptocurrency transactions incur specific network charges - in the case of Ethereum they are referred to as gas expenses. Processing companies for payments may be able to pay for these charges however some pass these costs onto. |
N | Y |
|
Control solely
Only you are able to perform the transactions for your account that go out. No one else is able to approve transactions without access to your private keys. |
N | Y |
|
Accept all cryptocurrency on any network
The processors for crypto payments provide a variety of crypto coins and crypto-based network. Custodial services can only be used in the currency they accept. Alternate solutions might offer greater options. |
N | Y |
|
integration
It's one thing to receive the cash, it's quite another to identify which client paid for the funds and which order was placed. Our partners have robust integrations that cover all aspects of the procedure from the initial setup through day-to-day administration. |
Y | Y |
Explore your options and pick the best cryptocurrency option to run your business.
The options for cryptocurrency can be confusing. It's well worth the effort to offer the ideal solution that's suited to your as well the needs of your customers. Spend the time to look through the advantages and disadvantages between the two kinds of cryptocurrency payment options to determine which best suits your particular company.
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